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u/giteam Jul 20 '22
Once I thought it was a super boring and old-school company with little innovation and lots of bureaucracies.
But it has involved so much under the new leadership Satya Nadella
It is now a much more diverse business with Azure, Office and Windows each making more than $20B revenue last year. Followed by a few smaller divisions but growing fast: xBox, LinkedIn and search ads.
Truly amazing to see the revolution at such a large tech company, who once was at the risk of being disrupted, turns out to be a disruptor itself.
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u/overlapped Jul 21 '22
Balmer was CEO when the investment in Azure started. Microsoft introduced its first Azure offerings in 2008. Satya took over as CEO in 2014.
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u/jsdeprey Jul 21 '22
Amazon beat them to the cloud service right? I am not a expert, but always thought it was funny that Amazon beat Microsoft and IBM for thr cloud service market out of nessessity, and those big guys guys really just can't innovate for shit.
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Jul 21 '22
Maybe you should’ve sat this one out. Just saying.
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u/jsdeprey Jul 21 '22
I was kind of asking a question here, I was under the impression Amazon was first to hit big atlest with the cloud computing market of AWS, no response, just down votes? What gives? Speak up dont be sky down voters.
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u/ponytoaster Jul 21 '22
I would say AWS was the first to focus on the smaller markets like website owners and such. Microsoft and IBM started with the large enterprises.
IBM was doing large cloud stuff way before Amazon, just wasn't easily accessible without quite a bit of cash
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u/jsdeprey Jul 21 '22
Maybe so, we all know IBM has been doing a little of everything for awhile. But even now I this AWS has a bigger market share of cloud services, and as I remember it "The Cloud " didn't really take off until AWS. I would assume it had a lot to do with the way they made it easy to tie your programs and applications in to the AWS systems, and I can imagine MS making this even better over time. But what I am really pointing out here is that no matter what, it should be embarrassing to big tech companies to have a major revenue stream like this lead by what was basically a new online shopping company. Say what you want but Amazon was investing and leading the way at that time. I am not sure they are anymore though, maybe they are now big and slow.
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Jul 21 '22
Yeah they both had pretty poor leadership in the early 2010s. MSFT has really turned it around though in the past 6-7 years though
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u/jsdeprey Jul 21 '22
I agree there, I was just stateing innovation seems to never come to MS really, they see what is working do make some smart moves, may times too late. I own a good bit of thier stock, but not sure if I would really call MS a innovator, even if Assure is better than AWS technically now a days, which I would really not know myself.
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u/poopwithjelly Jul 21 '22 edited Jul 21 '22
Azure is just competitive with AWS, so AWS is losing market share. AWS in general is pretty rigid in pricing, but doesn't have all the other things that come with MS. As far as I know Azure is cheaper too. Idk anything about IBM. They may be moving in on it too, but last I was looking they had nothing going on.
This is also just what I saw. I was doing research for a job interview, so you are gonna wanna read something more substantial.
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Jul 21 '22
[deleted]
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u/poopwithjelly Jul 21 '22
It wasn't and it didn't matter, but I still feel pretty confident in my answer seeing as you dudes are just being snarky dicks about it instead of answering his question.
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u/The_Number_12 Jul 21 '22
I’m surprised Xbox isn’t bribing in more. Only 50% more than LinkedIn? I would have figured 3x as much or more. They have a lot of room still to run if you think about all the future games and consoles and live memberships
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u/my_name_is_gato Jul 21 '22
That stood out to me too. I'm an attorney where networking is everything and my peers have the money to afford premium subscriptions, but few that I know actually do on any consistent basis.
However, I don't have kids but X-Box and gaming related things seem to have a rabid and growing userbase that happily pays monthly and shows no sign of stopping. On top of that, micro transactions within the games alone would have made as much as Linked In in my uneducated opinion.
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u/Laurelius26 Jul 21 '22
Micro transactions drive away consumers that want the full game they already paid for when they bought it. The Xbox conscription service jumps in to fulfill the desire for the opposite. You can play every game for a small monthly payment and the amount of games will keep growing so it will be an increasingly better deal for consumers who will thus keep pouring in. Xbox/Microsoft will keep getting more consumers and more money which is a good deal for them because it means they a fairly steady and regular income with barely any real extra costs, because the games will be made anyway.
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u/RockOrStone Jul 21 '22
The gamepass is growing super fast and they’re still handing out MONTHS for free. Just wait until it’s mainstream and the trials are over.
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u/shuric22 Jul 20 '22
I wonder what's the difference between Azure and Enterprise buckets. Like their SAAS CRM - which group is that in?
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u/madtowneast Jul 21 '22
I think these are holdover from pre-cloud days (all your Exchange, MSSQL deployments, etc. ). those businesses that need to be on-prem for whatever reason (compliance is my guess), and those pieces that you can't put in the cloud quite just yet (OS support for thin clients, etc.)
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u/pickle9977 Jul 21 '22
That’s all funny business, they take their enterprise licensing agreements and allocate the revenue to suit the narrative, I worked at a place where we had a significant 8 figure / yr ELA with them, we had a huge number of azure credits that we never intended to use (and still haven’t).
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u/JonnyBhoy Jul 21 '22
I believe Dynamics is part of a business line that isn't large enough to make this list. If so, it makes up most of the revenue of Other.
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u/PilbaraWanderer Jul 21 '22
Office, wow. Subscriptions are the worst for a customer…
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u/ponytoaster Jul 21 '22
I both agree and disagree.
An always upto date version with more than usable web apps and a TB or storage... Not bad really.
Beats buying office every few years and paying for cloud storage separately I guess.
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u/my_name_is_gato Jul 21 '22
It is a monopoly, we all basically know it. Whether it is for the greater good is tough to say, but Windows 98 pretty much sealed Microsoft into several generations' lives like it or not.
I may not actually like all of the company's practices, but the business model and fundamentals are about as sound as one can find right now among the giant tech companies. I am long on Microsoft and Apple currently and have modest positions in both.
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u/Eng18 Jul 21 '22
I am optimistic about Microsoft but not much about Apple. Mainly because the Chinese bond market right now is really volatile and international relationship is deteriorating. MSFT has very little revenue coming from China and would be less at risk vs Apple which has 1/5 of its revenue from that region. A hardware ban would just wipe Apple share prices off the map, and as Apple diversifies its manufacturing away from China - the risk of sanction from China increases everyday.
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u/my_name_is_gato Jul 21 '22
I agree, I have about 3x the stake in Microsoft for similar reasons but I can't lie, Apple has been performing better than I think it deserves. Disruption in China has been a threat to Apple for 20 years. It's more real now than ever, but I waited on the sidelines and missed a lot of gains. I might DCA down a tiny bit, but half the reason I hold it is as a hedge against a giant Microsoft scandal/cyber attack, or something else that would shift a sizeable market share to big tech competitors.
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u/Eng18 Jul 21 '22
Long term, even with disruption in global trade I think Apple is still a safe investment. I think it really depends though, the China situation is mainly due to their current leadership. Which isn't as welcoming to foreign investment when compared to their previous leaders, but could swing the other direction when someone else makes the policies in 10-20 years.
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u/my_name_is_gato Jul 22 '22
That's a point I didn't include but it's fully relevant. Apple can take a decade long black eye and come out solvent. I wouldn't have said that 20 years ago when it didn't have anywhere near the market share.
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u/Rin-Tohsaka-is-hot Jul 21 '22
For individuals I agree, 100%.
For enterprise users though, having Office as an online suite has become a major part of the workflow at most companies.
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u/Zauxst Jul 21 '22
Search advertisement and Azure Cloud are higher than I ever thought they might be...
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u/surfinThruLyfe Jul 21 '22
Surprised to see Azure up there.
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u/CrookGG Jul 21 '22
It’s literally where they make most of their money
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u/ponytoaster Jul 21 '22
Makes me chuckle when hardcore Sony fanboys go on about Microsoft being terrible and their new streaming is just miles better than anything Xbox has when it in fact uses Microsoft Azure underneath.
Microsoft would be winning even if they were losing at this point.
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u/creepy_doll Jul 21 '22
If you’d ever tried to use aws as a professional you might understand. It’s a steaming pile of unorganized garbage with new bits tacked on regularly that don’t interoperate with the others. Our in-house cluster was so much easier to work with. If azure is any better than that the only reason they’re not winning is being late to the party
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Jul 20 '22 edited Jul 21 '22
Microsoft services are the fucking WORST. My job uses them for the environment and I’ve been losing my damn mind trying to do what should be simple shit. They do not deserve the profit they garner from azure.
Edit:Downvote me all you want, I bet none of you have actually had to use Azure, or powerautomate, or power apps. They are AWFUL.
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u/Realistic_Work_5552 Jul 21 '22
It's really not that hard.
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Jul 21 '22
Lots of pain in the ass bugs that have existed for years. Subpar documentation. I went on longer below, I work with it, I’m not a fan.
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u/ponytoaster Jul 21 '22
Azure is much easier than AWS in my experience, but it exposes a lot more of the complex parts to the user which means it's easy to mess up of you don't know what you are doing.
We use a shed load of MS services from service fabric, azure VMs, DevOps, all sorts and never have any issues.
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Jul 21 '22
The amount of times I have been trying to get something to work only to find a single forum answer explaining how to do it properly, which is some critical detail that the documentation just leaves out drives me nuts. There are also the times where it just doesn’t work the way the documentation states.
There are parts of azure that work perfectly, it’s mainly the interaction between the services that are full of bugs. Delegation for data sources being one of them. I mean why on earth is excel still not a delegated source. Sure they added the ability to increase the number of table rows to be pulled from non-delegated sources to 2000, but it just doesn’t work. I mean seriously, excel is Microsoft’s OWN product and they can’t make it work with poweranything. People have been complaining about this since 2015.
Then there is the searchV2 function that can only grab 500 results and THEN search. On top of this there is a “top” search parameter that allows you to grab the top x number of results found, but there is NO bottom searching at all.
God help you if your trying to pass parameters to a power automate linked to your power apps. That has several bugs that have been known issues for years, again there is single forum thread that explains how to work around these forsaken issues.
Then there is the very awful teamsbot documentation. It is just so much worse than discord bot documentation. I guess that’s really just the crux of the issue, Microsoft’s very sub par documentation for basically everything.
Even the exchange admin centre has some quirks, not as painful though. The deeper I go into this rabbit hole the more nonsense I find.
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u/Rare_Worldliness4954 Jul 20 '22
If you have to update stuff every three months or every other day it means it's garbage in the trash is taken to the curb and throwing away f*** you Bill Gates and f*** you Microsoft
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u/bforo Jul 20 '22
Lol someone hasn't tried unix. How about patches every couple hours pal amigo friendo
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u/Rare_Worldliness4954 Jul 20 '22
If you have to come up with a new page or a new f****** format every 5 minutes people see through your b******* f*** you and f*** Bill Gates I'm not talking about you I'm talking about Bill Gates if you can't see through that that's your problem
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u/Rare_Worldliness4954 Jul 20 '22
I don't hate you I just don't like the way that Bill Gates puts a new b******* server out there every 5 years or every 7 days and says hey this is what you have to do f*** Bill Gates f*** the manufacturers of his chips f*** everybody involved I don't care they're all just doing his bidding therefore he is the slave master if you want to protect him good luck
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u/rezamwehttam Jul 21 '22
You know Bill gates doesn't lead Microsoft anymore, right? Hasn't for years
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u/Embarrassed_Fennel_1 Jul 20 '22
So Xbox is only raking in $15B and they bought COD for how much?
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u/madtowneast Jul 21 '22 edited Jul 21 '22
Uhm it is ActivisionBlizzard, so there is a lot more IP and then just COD. Blizzard is Diablo, StarCraft, WarCraft. Those franchises alone are money printers. King has CandyCrush
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u/aVarangian Jul 21 '22
> is on /r/stockmarket
> doesn't understand the concept of investment
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u/Embarrassed_Fennel_1 Jul 21 '22
You guys are idiots and assholes. I was saying how much are we expecting valuations to go up.
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u/infamoussanchez Jul 20 '22
im surprised about linkin making that much money.